Cannot Initialize 3D engine could be due to widescreen resolutions. SH3 needs 4:3 (1024x768) or 5:4 resolution(1280:1024). For that in the compatibility properties of the Sh3.exe executable disable fullscreen optimizations.
Or it could mean it doesn't detect DirectX 9. The already built in DirectX in Windows 10/11 isn't sufficient for such an old game.
https://www.microsoft.com/en-us/down...s.aspx?id=8109